You could honestly use both "here" and "there". "Here" would be perhaps more suitable if you have described in detail the place, or to whatever "here" refers to. "here" is generally closer, and "there" implies you are further from the place and that you are distant from the memory, I guess.

"Here" is an example of free indirect style (discours indirect libre). "There" would just be indirect style, since the narration doesn't shift all the way into the perspective of the character being described.